ITEM 112-2003-R0701 Authorization
to Take Steps Necessary to Sell Property Bequeathed to the University by Helen
Lutz; Montana State University-Bozeman

THAT: The
Board of Regents of Higher Education authorizes Montana State University-Bozeman
to take steps necessary to accomplish the sale of the Lutz property located in
Gallatin County, Montana.

EXPLANATION: In
1983, 560 acres of land located in Gallatin County was received by the MSU
Foundation from the estate of Helen Lutz.
The land was exchanged with the university in the 1990 land exchange. In the will and deed of distribution, the
land was conveyed “to be used exclusively for agricultural experiment
purposes.” The estate advised the MSU
Foundation at the time of conveyance that it had been Ms. Lutz’s desire that
her long-time tenant farmer be allowed to share crop the property. The land was under this share crop
arrangement until 1997 and has been subject to a cash lease since that time. See attached deed of distribution and
related correspondence.

The College of Agriculture/Montana
Agricultural Experiment Station desires to sell the property and use the
proceeds for agricultural experiment purposes.
MSU believes it is advisable to seek clarification from the state
district court that the language directing the use of the property for
agricultural experiment purposes would not preclude sale by MSU. Therefore, MSU intends to proceed with a
court action prior to the sale to assure the land can be sold and the proceeds
used for the purpose stated by Ms. Lutz. Upon receipt of a favorable court
ruling, MSU would proceed with a sale of the land as required under the state
statutes governing the sale of university real property, including Board of
Regents and Montana Board of Land Commissioner’s approval.